In line with the previous information, state TV channels should continue to broadcast commercials at 0.5% of their daily airtime. According to the Ministry of Interior, CT could get about CZK 450m a year from advertising. Czech TV should distribute revenues as follows: i) CZK 150m to the movie fund; ii) CZK 15m to telecommunication office; iii) the rest CZK c285m for TV broadcasting digitalization.
Our view: We estimate that CT would account for only 1-2% market share following the introduction of the new bill. Please note that the commercial station limit for advertising slots amounts to 12.0% of their airtime. We expect a neutral market reaction to the news.